27Feb

International Family Insurance for Expats

The number of children you have is a key factor to consider when shopping for health insurance. Needless to say, buying cover for your entire family will require higher out-of-pocket costs but it will guarantee your peace of mind especially when in a foreign country.

Emergency private health care with a single night’s stay can cost anywhere between HK$100 to $2100 just for the hospital room! depending on tests, medication and type of room.  Having a family health insurance policy allows you to be prepared for sudden critical treatments such as surgery or medical evacuation.

Terms to understand about family health insurance

Deductible– The amount you pay to address covered medical expenses before your health insurance policy begins to pay for covered medical expenses each year. Most family health insurance policies have individual deductible options which can be taken out to reduce your premiums.

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Coinsurance– your share of the costs of a health care service. It’s usually stated as a percentage of the total charge for the service. Your provider pays the bigger portion. You start paying coinsurance after you’ve paid your policy’s deductible.

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Co-pay– the payment you make, usually a fixed amount such as HK$400, each time you visit the doctor or fill a prescription medication. Not all plans have co-payments.  These do not accumulate towards the deductible. Co-pay and coinsurance may be available at the same time.

We suggest choosing a plan with low co-pay if you think you will often visit your doctor or pharmacy.

Why is it cheaper in the long run to get a family health insurance?

Some special health insurance for families even offer free cover for your 2nd, 3rd and 4th children until they are 18 which can really reduce your family’s premiums.

Village Insurance is currently offering this type of family health insurance. Policyholders can also get 25% No Claim bonus on top of the free coverage for the said number of children.

You can see more of the options we’re offering here: International Family health Insurance

Feel free to connect with Mark Bromhead on LinkedinFacebook and Twitter

10Feb

Financial Protection for Your Family After You’re Gone: Life Insurance

It’s not a topic most people are fond of. Death is a natural part of our lives which also involves strategic financial preparation. Getting Term Life insurance or Permanent Life Insurance also  means arranging the best scenario for your spouse and children.

Suffering from a long illness causes a lot of strain on your family’s finances and after a member dies the remaining people are left with the burden of paying for the accumulated bills even during a time of grief.

Getting protection early is the best way to avoid subjecting your family to such tragic circumstances. Here are ways you can prepare and secure them financially.

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Expecting the worst may not be the most pleasant means of preparation but it is the best. An extreme scenario would be falling ill for an extended period of time and failing to claim your insurance or perhaps not being covered at all. Calculate for how much long-term care would cost including associated bills.

Term Life Insurance can protect you and your beneficiaries within a set period usually up to 30 years. Your family receives the payout if you die before the policy ends. Some Term Life Insurance will cover critical illness expenses depending on the listed benefits.

Permanent Life Insurance will cover you indefinitely for as long as you are paying the premiums. This type of life insurance allows the holder to cancel the policy and cash out the premiums that have been paid at any time. Ask your insurance broker which type of life cover suits your needs.

Take cancer as a worst case scenario. If it runs in your family then the probability of getting the disease will be higher. The cost of eight weeks of chemotherapy in Hong Kong can range from HK$100 to $30,000. Cost of cancer chemotherapy also depends on other factors such as choice of drugs as well as frequency and duration of treatment. Hospital charges further add to the cost of the prescribed drugs. It is easy to imagine how your savings can get depleted without an insurance policy to cover part of the expenses. There are a  number of life insurance policies that cover critical or terminal illness. These plans cover treatments and a few prescription drugs. Talk to your insurance broker as these details may vary.

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Add the inability to pay for funeral costs to your worst case scenario. There are other means of paying for this type of expense such as a separate funeral plan but if this is not the case a life insurance policy will be able to cover the fees if it is included in the benefits. Term Life Insurance policies often add funeral costs. Expenses for a funeral require payment for a funeral director, storage of the body, a coffin, cremation (if preferred), funeral car and more.

The average cost of a funeral in Hong Kong is  HK$7,775, cemetery costs excluded. A grave space, a grave marker and opening & closing the grave can easily cost another HK$1,500 to $2,500. A traditional funeral and burial can go as high as HK$9,000. Adding this amount to unpaid hospital bills is a burden no one would want to place on the people we leave behind which makes it all the more crucial to prepare.

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The spouse is often the primary listed beneficiary but we advise adding your children if the policy allows for it. Again, expect the worse which may mean an unexpected event with your spouse shortly after you’re gone.

Be wise about who you list as your beneficiaries and choose a life cover that allows one or more listed recipients of the payout (if any).  Term and Permanent life insurance allows for this type of arrangement but the number of beneficiaries will vary.

Village Insurance will guide you through the process of preparing for the worst case so you can protect your family.

Contact us here for any questions you might have about Life Insurance.

Feel free to connect with Mark Bromhead on LinkedinFacebook and Twitter.

 

Resources:

https://www.moneyadviceservice.org.uk/en/articles/how-much-does-a-funeral-cost
http://www.termlifeinsurance.org/
http://connection.ebscohost.com/c/articles/97768266/overview-recent-research-longevity-risks-retirement-some-practice-considerations-life-insurance-planning